What is the effect of import restrictions on prices?
What will be an ideal response?
Answer: They cause prices to rise.
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Use the figure below to answer the following question. 
The case of complementary goods is represented by figure
A. 1. B. 2. C. 3. D. 4.
Both France and the United Kingdom successfully used exchange-rate targeting to lower inflation in the late 1980s and early 1990s by tying the value of their currencies to the
A) U.S. dollar. B) German mark. C) Swiss franc. D) Euro.
According to Paul Krugman, during the past decade Japan's macroeconomic policy should have incorporated which of the following?
A) stimulatory monetary policy B) stimulatory fiscal policy C) monetization of the debt by the central bank D) All of the above
According to the classical model, in the labor market
a. perfect information about the market price by market participants is required. b. the labor market is always in equilibrium. c. prices and wages are perfectly flexible. d. both suppliers and purchasers of labor must know the relevant trading prices. e. All of the above.